Jersey Mike's Subs Same-Store Sales Growth More Durable Than Peers, RBC Says

10:44 AM EDT, 08/24/2026 (MT Newswires) -- Jersey Mike's Subs (JMKE) same-store sales growth is more durable than peers and has room for upside aided by menu innovation and investments in digital and lower-funnel advertising, RBC Capital Markets said in a Monday research note. The company's national marketing campaigns separate the brand from sandwich peers and have resulted in system sales growing 26.2% since 2023, despite the US sandwich category having been flat over the same period, according to the note. RBC estimates a franchise return on invested capital of 43.5%, meaning about 2.5 years needed for payback, which is "well ahead" of sandwich competitors. RBC said that strong returns on capital and flexible real estate strategy, combined with competitor closures gives confidence in the company's path to 7,500 and more domestic units. With Jersey Mike's Subs slated to launch in the UK this year, RBC said that sandwiches are a proven cuisine globally, given that the company's largest competitor has over 16,000 locations in over 100 countries and that Jersey Mike's Subs can take market share given its differentiation. RBC initiated the company with an outperform rating and a $28 price target. Price: 23.43, Change: -0.43, Percent Change: -1.80